Monday, January 30, 2017

India "Free Data" Rules Illustrate How Hard it is to "Solve" Internet Access Problem

Of the several clear problems confronting nations, governments and service providers, lack of facilities and the price of service are clear issues. Frustratingly, those are, to some extent, mutually exclusive goals. Low prices stimulate usage, but low prices also discourage investment to provide service.

Tactically, internet service provider ability to offer low cost or free service can be challenging, as when it is unlawful to do so, or lawful under only some conditions.

Though the Telecommunications Regulatory Authority of India (TRAI) bars zero rating (free service), it apparently does not believe that the principle of offering consumers free data should be completely barred, only “who” should be allowed to do so.

Subsidizing rural users from universal service funds, for example, is permissible. Subsidized free access by mobile operators or app providers (toll-free internet access or free access to bundles of apps) is not permissible, under network neutrality rules.  

If it seems confusing, that is because the policies on how consumers receive subsidies is confusing. Promotional campaigns have not yet been seen as impermissible, for example.

But free” is a powerful price point, as shown by mobile account additions in India in October 2016, where Reliance Jio is grabbling most of the account growth in the whole market. Nor, in principle, does TRAI object to free services paid for by universal service funds.


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